paying loans after filing

[brighteyes]

I had auto payments on my car and student loans. Like everyone said they stopped the auto payments. I called to get info and the car loan people said I am no longer under obligation to pay. The student loan peoplesaida payment isn't due for a year. I guess they put your account in an automatic hold for 1 year. I know student loans aren't dischareable and we will be keeping our car. Do I still make the payments or do I wait till after the bk is done. What does the trustee want to see?

[LadyInTheRed]

If you are keeping your car, keep making payments. The lender is telling you that because you legally aren't required to pay and they don't want to violate the automatic stay by telling you otherwise. If you aren't current at the time you are discharged, the lender can reposses your car. I also recommend you pay your student loan if you don't need the forbearance. Interest will continue to accrue. It adds up quickly.

[justbroke]

I will only add to what the Lady In The Red posted. You should review this with your attorney. I do not know how much you owe on the car, how many months are left on your payment term, nor the value. There are options when you file Chapter 7 which could include surrendering (returning) the car or even redeeming the car for the current market value.

If you had been paying your student loans, you can continue to do so. Remember that interest still accrues even in the forbearance period. If you are keeping the car, again, think about what you want to do with the car, but you will (likely) need to be current before discharge, or the car lender may repossess.

Do you know what you put on your Statement of Intentions regarding the car?

[LadyInTheRed]

Redemption. Redemption. Redemption!! I have to remember to mention that when I venture into the Chap 7 world and answer these kinds of questions.

[justbroke]

Yes, Redemption is a special perk for Chapter 7 filers. It even sounds nice... as if to redeem yourself from all your debt!

[brighteyes]

We intend to keep our car, I would love to use the redemption card but I don't know if I could come up with that chunk of money so quickly. And if I could, how would the Trustee value my car? I think we owe about 11k and our schedule says it's worth 9k. The 9k came from kbb, so I don't know if that is even correct.

I have another question; we have told our lawyer that we don't want to keep our home, which was a rental until the renters stopped paying rent and moved out. He keeps saying "you are doing everything you can to save the home, right?" What does that mean? He knows the only way we are going to keep it is if WF will reduce the principle to fair market value and give us a 30 year fixed at the market rate. The forgiven amount must be discharged in the BK and they may never be able to come after us for any profit we make on the house if and when the market recovers and if and when we sell the home. Stranger things have happened. I noticed that he has it listed in the statement of intentions as we are keeping it. Is he just doing this to pass our means test, although we really don't need it, and then later down the road say it's just not going to work and modify our statement of intentions to include the home?